catallaxy files

catallaxy in technical exile

Bankrupt the CCT Operator!

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This particular remark from Peter Debnam has brought NSW infrastructure planning to a new low:

The Opposition Leader, Peter Debnam, pledged to claim back all 70 roads closed or narrowed for the tunnel. He expected no compensation would be payable because the operators would be broke by the time he won office.

Sounds like a credible solution….

Even with low usage it seems unlikely that the operators are failing to make a sufficient return on their capital to fund their liabilities. It also seems unlikely that the operators have not maximised their return by cutting costs (I’d be surprised if that tunnel ever gets a lick of paint again). Sure, the capital investors might see that their investment is under performing and choose to sell the asset (at a discount). But go into liquidation? Ha! Besides the fact that the liquidator would no doubt pursue any claim against the government, Debnam’s remarks betray his lack of credibility as an alternative Premier. Considering that amoebic life could do a better job of running the state than the incumbent, you really have to salute the Opposition for doing so poorly. Being such a joke really must take some effort, and for that, we must salute them.


Written by Admin

June 6, 2006 at 10:05 am

Posted in Uncategorized

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